Chapter 4Chapter 4

Finances and Career Finances and Career PlanningPlanning

Choosing a CareerChoosing a Career• What is the difference between a job and a What is the difference between a job and a

career?career?• Can a job become a career?Can a job become a career?• Job: Work that you do mainly to earn moneyJob: Work that you do mainly to earn money• Career: A commitment to work in a field that Career: A commitment to work in a field that

you find interesting and fulfilling, continued you find interesting and fulfilling, continued training with growth potentialtraining with growth potential

• Careers will also affect personal lifeCareers will also affect personal life• Choose a job based on money or choose Choose a job based on money or choose

based on satisfactionbased on satisfaction

Trade-offs of Career Trade-offs of Career DecisionsDecisions

• Choice of career will affect the amount of Choice of career will affect the amount of money you make, people you meet, and money you make, people you meet, and amount of spare timeamount of spare time

• Standard of Living: A measure of quality of Standard of Living: A measure of quality of life based on the amounts and kinds of goods life based on the amounts and kinds of goods and services a person can buy. Also work to and services a person can buy. Also work to pay for hobbies and activities they enjoypay for hobbies and activities they enjoy

• Others pursue jobs for money and personal Others pursue jobs for money and personal fulfillment, careers reflect interests, values, fulfillment, careers reflect interests, values, and goalsand goals

Cont.Cont.

• Career will involve trade-offs or opportunity costsCareer will involve trade-offs or opportunity costs• People will often devote most of time and energy People will often devote most of time and energy

to their workto their work• Flexibility (flex scheduling, cafeteria benefits)Flexibility (flex scheduling, cafeteria benefits)• Trends: Developments that mark changes in a Trends: Developments that mark changes in a

particular area. Many people making decisions particular area. Many people making decisions that allow more family time, time for hobbies, and that allow more family time, time for hobbies, and interests. (turn down transfers and promotions)interests. (turn down transfers and promotions)

• More you know about your interests, goals, More you know about your interests, goals, values and needs the easier it is to choose a values and needs the easier it is to choose a career.career.

Career Training and Skill Career Training and Skill DevelopmentDevelopment

• Obtain as much education as possible, Obtain as much education as possible, helps achieve goalshelps achieve goals

• Potential Earning Power: the amount of Potential Earning Power: the amount of money you earn over time. Having money you earn over time. Having more education increases.more education increases.

• Field of education also will affect your Field of education also will affect your salarysalary

• Must adapt to environment: Work well Must adapt to environment: Work well with others, strive to do best, creativitywith others, strive to do best, creativity

Personal FactorsPersonal Factors

• Can take special tests to learn about abilities, Can take special tests to learn about abilities, interests, and personal qualitiesinterests, and personal qualities

• Aptitude Test & Interest InventoryAptitude Test & Interest Inventory• Aptitudes: Natural abilities that people Aptitudes: Natural abilities that people

possesspossess• Interest Inventory: Tests that help you identify Interest Inventory: Tests that help you identify

the activities you enjoy the most, along with the activities you enjoy the most, along with those you dislikethose you dislike

• Won’t lead you to the exact career, but guide Won’t lead you to the exact career, but guide you in the right direction. Want to find job you in the right direction. Want to find job that balances financial rewards and personal that balances financial rewards and personal satisfactionsatisfaction

Making Career DecisionsMaking Career Decisions

• Changes in personal life and in Changes in personal life and in society will affect your work lifesociety will affect your work life

• Fig. 1 (pg. 93) shows stages of career Fig. 1 (pg. 93) shows stages of career planning, changes, and advancementsplanning, changes, and advancements

• If unsure about direction to take, talk If unsure about direction to take, talk to someone in your field. What do to someone in your field. What do they like and dislike? How did they they like and dislike? How did they get into the field?get into the field?

External Factors and External Factors and OpportunitiesOpportunities

• How will the following factors affect you?How will the following factors affect you?• Social Influences: Social Influences:

– Demographic Trends: Ways in which groups of Demographic Trends: Ways in which groups of people can change over timepeople can change over time

– Recent Demographic Trends: More working Recent Demographic Trends: More working parents/single parents (increases food industry parents/single parents (increases food industry and child care), More leisure time (boosts and child care), More leisure time (boosts health, physical fitness and recreation health, physical fitness and recreation products), More elderly people in overall products), More elderly people in overall population (increase in retirement facilities, population (increase in retirement facilities, health care, and travel services), Demand for health care, and travel services), Demand for ongoing employment training (teachers and ongoing employment training (teachers and trainers in org.)trainers in org.)

What effect will baby boomers have on you?What effect will baby boomers have on you?

Cont.Cont.

• Geographic Trends: Changes that Geographic Trends: Changes that occur when people move from one occur when people move from one area of the country to another and its area of the country to another and its financial centers shift locationfinancial centers shift location

• Fast growing markets: Arizona, Fast growing markets: Arizona, Florida, Georgia, Nevada, North Florida, Georgia, Nevada, North Carolina, New Jersey, ArkansasCarolina, New Jersey, Arkansas

• Geographic Locations: Big Geographic Locations: Big Cities=Higher cost of livingCities=Higher cost of living

Economic FactorsEconomic Factors

• Career opportunities influenced by Career opportunities influenced by high interest rates, price increases, high interest rates, price increases, or decreased demand for certain or decreased demand for certain goods and servicesgoods and services

• Major affect on construction, real Major affect on construction, real estate, auto salesestate, auto sales

Trends in Industry and Trends in Industry and TechnologyTechnology

• Manufacturing jobs are on the decline, Manufacturing jobs are on the decline, service and technology on the riseservice and technology on the rise

• International competition major factor for International competition major factor for decline, automation also a factordecline, automation also a factor

• Technological advances can quickly make Technological advances can quickly make your product obsolete your product obsolete

• Service Industry: Those that provide Service Industry: Those that provide services for a fee will offer many services for a fee will offer many opportunities opportunities

• Need lots of computer/internet knowledgeNeed lots of computer/internet knowledge• Pg. 98 Examples of Service IndustriesPg. 98 Examples of Service Industries• Pg. 99 Document DetectivePg. 99 Document Detective

Section 4.2Section 4.2

Employment and Career Employment and Career DevelopmentDevelopment

Employment Search Employment Search StrategiesStrategies

• What experiences have you What experiences have you encountered that may help you get a encountered that may help you get a job?job?

Obtaining Employment Obtaining Employment ExperienceExperience

• Important to have work experience, even at a Important to have work experience, even at a young ageyoung age

• Part-Time Work: Summer or part time job, get Part-Time Work: Summer or part time job, get experience in a field you may be interested, experience in a field you may be interested, temporary positionstemporary positions

• Volunteer Work: Learn new skills, develop Volunteer Work: Learn new skills, develop work habits, make professional contactswork habits, make professional contacts

• Internships and Cooperative Education: Internships and Cooperative Education: Internship- Position in which a person Internship- Position in which a person receives training by working with people who receives training by working with people who are experienced in a particular field. Can are experienced in a particular field. Can sometimes lead to full time employmentsometimes lead to full time employment

Cont.Cont.

• Cooperative Education: Programs Cooperative Education: Programs that allow students to enhance that allow students to enhance classroom learning with part-time classroom learning with part-time work related to their majors or work related to their majors or interests. Spend part of time in interests. Spend part of time in class other half on related jobclass other half on related job

• Class Projects or After-School Class Projects or After-School Activities: Benefits: Activities: Benefits: – Managing, organizing, and coordinating Managing, organizing, and coordinating

peoplepeople– Public SpeakingPublic Speaking– Goal setting, planning, and supervisingGoal setting, planning, and supervising– Financial planning and budgetingFinancial planning and budgeting– Conducting ResearchConducting Research

Using Career Information Using Career Information SourcesSources• Sources to get up-to-date informationSources to get up-to-date information

– LibrariesLibraries– Mass Media (newspapers)Mass Media (newspapers)– The Internet (tips/suggestions, posting sites)The Internet (tips/suggestions, posting sites)– School Guidance officeSchool Guidance office– Community organizationsCommunity organizations– Professional Organizations (esp. in college)Professional Organizations (esp. in college)– Contacts (teachers, family, friends)Contacts (teachers, family, friends)– Networking: Way of making and using contacts to Networking: Way of making and using contacts to

get job information and adviceget job information and advice– Informational Interview: Meeting with someone who Informational Interview: Meeting with someone who

works in your area of interest, used to get more works in your area of interest, used to get more informationinformation

Identifying Job Identifying Job OpportunitiesOpportunities

• Job Advertisements: From Job Advertisements: From newspapers, internet, etc.newspapers, internet, etc.

• Job Fairs: Recruiters from local and Job Fairs: Recruiters from local and national set up tables and booths to national set up tables and booths to collect resumes and discuss job collect resumes and discuss job opportunitiesopportunities

• Employment Agencies: Government Employment Agencies: Government ran agency that helps to find jobs for ran agency that helps to find jobs for people. May charge a feepeople. May charge a fee

Other ways to find a jobOther ways to find a job

– Visit or call specific company you have Visit or call specific company you have an interest inan interest in

– Check telephone directory for business Check telephone directory for business namesnames

– Talk to people you know who work in Talk to people you know who work in the field (network)the field (network)

– Search InternetSearch Internet

• Finding a job is a job in itselfFinding a job is a job in itself

Applying for a JobApplying for a Job

• Most important tool in landing a job Most important tool in landing a job is your resumeis your resume

• Resume: 1-2 page summary of your Resume: 1-2 page summary of your education, training, experience, and education, training, experience, and qualifications. Provides perspective qualifications. Provides perspective employers with an overview of the employers with an overview of the special contribution you may be able special contribution you may be able to make to their companyto make to their company

• Two Basic Resume Types: Two Basic Resume Types: Chronological and Skills Chronological and Skills

Résumé'sRésumé's• Chronological Resume: Outlines your Chronological Resume: Outlines your

education and work experience, and related education and work experience, and related information, year by year (or longer periods) information, year by year (or longer periods)

• Useful for job hunters who have continuous Useful for job hunters who have continuous work experiencework experience

• Skills Resume: Highlights your skills and Skills Resume: Highlights your skills and abilities in specific categories, such as abilities in specific categories, such as communications supervision and researchcommunications supervision and research

• Useful for recent graduates or those Useful for recent graduates or those changing careerschanging careers

• HandoutHandout

More Job Searching TipsMore Job Searching Tips

• Along with a resume, a cover letter Along with a resume, a cover letter must be includedmust be included

• Cover Letter: Personal letter that you Cover Letter: Personal letter that you present along with your resumepresent along with your resume

• Cover letter tells a potential employer Cover letter tells a potential employer why you are interesting in a job and why you are interesting in a job and why you think that it would be why you think that it would be worthwhile to interview youworthwhile to interview you

• See pg. 47 and 48See pg. 47 and 48

The InterviewThe Interview• Formal meeting with your potential employer that Formal meeting with your potential employer that

allows you to express why you think you’re the allows you to express why you think you’re the best person for the jobbest person for the job

• Do research first, know about the companyDo research first, know about the company• Potential Questions:Potential Questions:

– What education and training qualify you for this job?What education and training qualify you for this job?– Why are you interested in working for this company?Why are you interested in working for this company?– What are your major strengths? Weaknesses?What are your major strengths? Weaknesses?– Where do you see yourself 5-10 years from now?Where do you see yourself 5-10 years from now?

• Most end saying when to expect to hear from themMost end saying when to expect to hear from them• Ask questions of themAsk questions of them• Follow up with letter (see ex.)Follow up with letter (see ex.)

Considering a Job OfferConsidering a Job Offer

• Consider factors before accepting a Consider factors before accepting a job offerjob offer

• Salary along with other financial Salary along with other financial benefitsbenefits

The Work EnvironmentThe Work Environment

• Every workplace has its own unique styleEvery workplace has its own unique style• Will notice difference between managers Will notice difference between managers

from interview to interview, personality from interview to interview, personality and way they handle employeesand way they handle employees

• Ex: Different TeachersEx: Different Teachers• Ask about policies: How do you handle Ask about policies: How do you handle

pay increases? How do you measure pay increases? How do you measure employee quality? How do you go about employee quality? How do you go about promotions?promotions?

Factors Affecting SalaryFactors Affecting Salary

• Beginning salary will depend on Beginning salary will depend on education, experience, company size, education, experience, company size, and average salary of the job you are and average salary of the job you are consideringconsidering

• Talk to people in the field to make Talk to people in the field to make sure you are getting fair salarysure you are getting fair salary

• Meet frequently with supervisor, Meet frequently with supervisor, asking for feedback and suggestions asking for feedback and suggestions on improvementon improvement

Measuring Employee Measuring Employee BenefitsBenefits

• What benefits are offered to you What benefits are offered to you besides paycheck? besides paycheck?

• Base on needs of your familyBase on needs of your family• Cafeteria-style benefits program: Cafeteria-style benefits program:

Allows workers to choose benefits Allows workers to choose benefits that best fit their needsthat best fit their needs

• Pension Plans: A retirement plan that Pension Plans: A retirement plan that is funded at least in part by your is funded at least in part by your employeremployer

Pension PlansPension Plans

• Different Types: Different Types: – Fixed amount of money is given to you at Fixed amount of money is given to you at

retirementretirement– Profit-sharing, employer makes annual Profit-sharing, employer makes annual

contribution to retirement fund each contribution to retirement fund each year. Money in fund builds up until you year. Money in fund builds up until you reach retirement agereach retirement age

– 401K, you set aside a portion of your 401K, you set aside a portion of your salary from each paycheck to go into salary from each paycheck to go into your 401K fund. Employer will often your 401K fund. Employer will often match a percentage of your contributionmatch a percentage of your contribution

Your Rights as an Your Rights as an EmployeeEmployee• Have certain legal rights as an employee and during Have certain legal rights as an employee and during

the hiring processthe hiring process– Can’t refuse to hire or terminate a woman because Can’t refuse to hire or terminate a woman because

she is pregnant. Must be given full credit for she is pregnant. Must be given full credit for previous service as well as credit for any retirement previous service as well as credit for any retirement benefits and seniority she has accumulatedbenefits and seniority she has accumulated

– Can’t discriminate based on age, race, color, religion, Can’t discriminate based on age, race, color, religion, gender, marital status, or disabilitygender, marital status, or disability

– Must be given at least minimum wage, plus overtime Must be given at least minimum wage, plus overtime if applicableif applicable

– Employer must pay for unemployment insurance, Employer must pay for unemployment insurance, contribute to social security, and provide workers contribute to social security, and provide workers compensation funds in case of a work related injury compensation funds in case of a work related injury or illnessor illness

Long-Term Career Long-Term Career DevelopmentDevelopment

• Skills to help assure that you are Skills to help assure that you are happy with your work in years to happy with your work in years to come:come:– Improve communication skills, look for Improve communication skills, look for

ways to get along with coworkersways to get along with coworkers– Develop good work habits, time-Develop good work habits, time-

management skillsmanagement skills– Be aware problems may arise, and take Be aware problems may arise, and take

action when they doaction when they do– Learn to anticipate problemsLearn to anticipate problems

Training OpportunitiesTraining Opportunities

• Technology advances are Technology advances are continuously changing, jobs now continuously changing, jobs now exist that didn’t a few years agoexist that didn’t a few years ago

• Keep up with technology changesKeep up with technology changes• Attend seminars, read magazines in Attend seminars, read magazines in

your field, talk with experts in your your field, talk with experts in your fieldfield

Career Paths and Career Paths and AdvancementAdvancement

• Personal interests, values, and goals Personal interests, values, and goals with probably change with timewith probably change with time

• See Figure 5 pg. 112See Figure 5 pg. 112• Way to stay on track is through a Way to stay on track is through a

mentor programmentor program• Mentor: Experienced employee who Mentor: Experienced employee who

serves as a teacher and counselor for a serves as a teacher and counselor for a less experienced personless experienced person

• Can answer many of the questions you Can answer many of the questions you encounterencounter

Changing CareersChanging Careers

• Most workers change jobs several Most workers change jobs several times over the course of their livestimes over the course of their lives

• Some go to new field, others to Some go to new field, others to entirely new careerentirely new career

• To change jobs, sometimes minor To change jobs, sometimes minor adjustment is only needed other times adjustment is only needed other times start from scratchstart from scratch

• How will the financial and personal How will the financial and personal costs and benefits of changing careers costs and benefits of changing careers affect your needs and goalsaffect your needs and goals

Signs that it’s time to Signs that it’s time to move onmove on

• You feel bored or depressed at workYou feel bored or depressed at work• Your job affects you in a negative Your job affects you in a negative

way physically or emotionallyway physically or emotionally• You receive a series of poor You receive a series of poor

performance evaluationsperformance evaluations• You have little opportunity to win a You have little opportunity to win a

raise or promotionraise or promotion• You have a poor relationship with You have a poor relationship with

your supervisor or coworkersyour supervisor or coworkers